Job growth stays on course

Moderate gains are seen in the latest monthly report, but Wall Street reacts with disappointment.

By DIONNE SEARCEY

capecodtimes.com

By DIONNE SEARCEY

Posted Aug. 2, 2014 at 2:00 AM

By DIONNE SEARCEY
Posted Aug. 2, 2014 at 2:00 AM

» Social News

The economy continued to advance at a sturdy pace in July, the government reported Friday, creating 209,000 jobs and adding to a string of generally positive economic reports in recent weeks pointing to an improved outlook after years of lackluster post-recession growth.

At the same time, last month's job gains were lower than in recent months and less than Wall Street had expected, helping to calm fears that the economy was about to accelerate to a point where the Federal Reserve might decide to start raising interest rates earlier than anticipated.

"This report is consistent with a moderation in economic growth in the second half of the year," said Dean Maki, chief U.S. economist at Barclays. "This is a labor market that is growing solidly, just not quite as fast as in prior months."

The new numbers signaled the sixth straight month in a row of job gains of more than 200,000, the healthiest pace of job creation during that length of time since 2006.

The Labor Department also said Friday that unemployment increased to 6.2 percent. Many economists viewed the slight rise in unemployment as a modestly encouraging sign, in part because more people reported that they were looking for work, suggesting that many of them were starting to see greater job opportunities.

On Wall Street, stocks fell for the second day in a row, though not as steeply as on Thursday, while the bond market improved slightly as interest rates softened.

The latest economic data eases the pressure on the Federal Reserve to retreat more quickly from its stimulus campaign. The Fed's chairwoman, Janet L. Yellen, and her allies argued in recent months that the declining unemployment rate overstated the economy's progress, because more people would start looking for work as the recovery continued.